The FED Projects Low Rates Through the End of the Year
As the economy recovers from the effects of the COVID pandemic, mortgage applications still remain about 18% lower than one year ago, according to CNBC- likely due to a continued shortage of available homes for sale. While the Federal Reserve intends to ease its purchasing of government-backed bonds by the end of the year, we can expect interest rates to remain consistently low, at least in the short term.
As we move toward the fourth quarter, we can expect to see home values remain strong fueled by continued limited supply combined by very inexpensive financing. This is great news for both buyers and sellers.
Traditionally, as the school year ramps up and we move towards the holiday season, we see a cooling of the real estate market. Families typically prefer to make housing moves between the school sessions and this is the time of year that folks like to relax their spending in anticipation of holiday expenses.
For sellers, this indicates that high demand will continue to keep home values strong at least through the end of the year while buyers continue to have low mortgage rates available to them to offset the higher-than-normal purchase prices.
As people continue to return to work, we can expect the Federal Reserve to relax its pandemic-related stimulus activities- namely the aggressive purchasing of government bonds- which should tempt interest rates to begin climbing by the end of the year.
This presents a now-abbreviated timeline to act on taking advantage of these historic market conditions so the time is now to get your home ready for market!
This is now the most ideal time, in this historic market condition, to sell your home. Demand remains high as interest rates remain low, promoting strong sales just as buying frenzies begin to cool down which will help you transition into your dream home at a low-low financing rate.
With over 35 years in the home selling business, Ultimate Properties has successfully predicted many market trends and, right now, our recommendation is SELL! SELL! SELL! (And then BUY! BUY! BUY!)
WE CAN MAKE THE SALE OF YOUR CURRENT HOME 100% CONTINGENT ON YOU FINDING THE HOME OF YOUR DREAMS AND IF YOU DON’T FIND IT, YOU DON’T HAVE TO MOVE.
Let us streamline the process of maximizing the profits on your current home and get you into the home of your dreams! Our direct line is (714) 203-1669 or send an email to office@UltimatePropertiesSold.com.